(Bloomberg) — Taiwan’s Hon Hai Precision Industry Co. has raised $1.1 billion in three-year financing, people said, as the iPhone maker continues to ride the boom in demand for AI servers.
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The scheme is a so-called new money loan, which provides companies with more funding on top of their existing debt, one of the people said, adding that it is for general corporate purposes.
The loans were provided by 17 banks, including Taiwanese and foreign lenders, said the people, who requested anonymity because the matter is private. Foxconn Singapore Pte., Falcon Precision Trading Pte. and ECMMS Precision Singapore Pte. are the borrowers and Hong Hai is the guarantor, the people added.
Honkai did not respond to a request for comment.
Hon Hai, also known as Foxconn, predicts the boom in demand for AI servers will continue into next year. Chairman Young Liu previously told analysts that cloud products will become the company’s growth pillar by 2025, rivaling mobile phone sales.
The company is also building the world’s largest assembly plant for servers equipped with Nvidia chips in Mexico, and plans are underway to locate its new headquarters in southern Taiwan in a 45-story commercial building.
Honghai reported a better-than-expected profit of NT$49.3 billion ($1.5 billion) in the September quarter.
–With assistance from Jane Lanhee Lee.
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